An old discovery on the Malargue block in Argentina's Neuquen basin, which showed a 600 m oil column but was nevertheless abandoned, could prove as big as Colombia's 1.5 billion bbl Cusiana field.
This view might be dismissed as explorer's fantasy were it not expressed by Nick De'Ath, senior vice-president of exploration for Triton Energy Corp.
It was Triton that took over the Cusiana license in 1982 after state owned Empresa Colombiana de Petroleos (Ecopetrol) had drilled without success. Triton's persistence led to discovery of two massive reservoirs.
Ecopetrol's wells were considered failures, De'Ath said, because they showed only low productivity, and they were not tested properly because Ecopetrol ran out of money. Triton saw prospects in plays that were then conventionally disregarded.
Triton approached 60-70 oil companies seeking to make farmouts, De'Ath said, and an approach was made to BP Exploration Operating Co. Ltd. in 1986. De'Ath, working for BP at the time, was won over to Triton's view of prospectivity.
TRY, TRY AGAIN
Early in 1987, BP acquired a farmout, and the Cusiana-1 well hit the field's gas cap. BP and Total SA were persuaded by Triton to apply for a development license, De'Ath said, but both majors pulled out at the last minute.
"Another year passed before Triton persuaded BP and Total back in to the Cusiana acreage," De'Ath said. "Triton's vision and exploration philosophy was behind Cusiana's success."
Now Cusiana production has reached 90,000 b/d and is expected to climb 185,000 b/d by yearend. Production is to exceed 500,000 b/d when development of Cusiana and Cupiagua fields is completed toward the end of 1997.
While Triton looks for farmout partners in Argentina, it will explore under a production sharing contract a number of gas prospects in Block A-18 of the Malaysia-Thailand Joint Development Area in the Gulf of Thailand. Here Triton is 50-50 partner with Malaysia's state owned Petroliam Nasional Bhd.
EXPLORATION PLANS
Late last year Triton and Petronas acquired 5,700 line km of seismic data near the Pilong discovery on the block. A five well exploration and appraisal program is to start in May, targeting reservoirs at 8,000-9,000 ft.
"This area has been untouched for twenty-odd years," De'Ath said. "In the meantime, significant gas production infrastructure has built up nearby."
Development would be straightforward, he said, because water depth is only 200 ft and there are gas export pipelines running to the north and south.
De'Ath said Exxon Corp. drilled the Pilong discovery well in the early 1970s, testing 29 MMcfd of gas. Exxon pulled out of the license because there was no ready market for gas.
"Triton's exploration philosophy is to look for big prospects even in mature plays," De'Ath said. "The majors are often unsuccessful because they can't accept a dry hole now and then.
"There is still lots of oil to be found under our noses if only explorers are given room to be creative. Too much decision making is done by financiers, who are risk-averse."
Copyright 1995 Oil & Gas Journal. All Rights Reserved.
